Published: 26th Mar 2020

The government should take equity stakes of 30% in struggling transport, retail and manufacturing companies to support them through the coronavirus pandemic, says the IPPR think tank. Economists Eric Lonergan and Mark Blyth argue that the government is likely to recoup up to three times its investment in struggling UK companies as they bounce back over the next decade which ‘underscores the long-term benefit of intervention now.’ Shares should eventually be used to begin building a new National Wealth Fund, they say, for the benefit of citizens with few assets of their own. The fund would also be used to drive higher social, environmental and governance standards within the companies in which it holds a stake. But for now the government should insist only that any businesses it helps with major cash injections retain all their current staff, to preserve jobs and support the wider UK economy. The paper comes … (To read the full article, subscribe below)